Hello everyone and welcome back to another blog post.
Today we bring you the news of SIAM Commercial Bank (SCB) drastically reducing its cross-border payment times from 2 days to only a minute.
SCB is the oldest bank in Thailand is reported to have integrated Ripple’s technology for its cross-border fund transfer. The bank revealed that it was able to bring down its cross-border transfer time from 2 days to only 1 minute, according to an official announcement from the bank. In a bid to optimise operational efficiency, SCB and PTTEP have collaborated since mid-2018, on a research and development effort to adopt blockchain technology for cross-border business to business payment.
Earlier this year, the project was able to make pilot payments on blockchain with payments reaching destinations within 1 minute, compared to 1-2 days with conventional methods.
While Ripple was not mentioned in the latest announcement, the bank had released an earlier announcement saying it was working with Ripple’s technology to ensure faster cross-border transactions. Ripple also praised SCB in a blog post, mentioning that SCB will be the first financial institution on RippleNet to pioneer a key feature called multi hop, which allows them to settle frictionless payments on behalf of other financial institutions on the network. This eliminates the need for a direct 1-1 connection or bilateral relationship.
Between financial institutions to settle a payment using multi hop, SCB will be able to receive and forward on a payment without a bilateral relationship between the originator and beneficiary institutions.
SCB are the first financial institution on RippleNet to pioneer multi hop. This is a big step in our journey towards global adoption. This is the network of networks that we have spoken about being grown and developed now.
Although SCB are only using xCurrent as of now this is still a huge step in the right direction. These huge institutions aren’t simply going to flip and put their legacy system’s on blockchain straight away. The first step will be going to bilateral messaging through xCurrent – which speeds up their current system, as SCB have shown with incredible results.
That’s it for today guys and girls, we will continue bringing you the news that really matters and what is going on behind the scenes. With all the FUD being thrown around recently it’s important to focus on the longer-term picture as we are on a journey towards adoption, and the news above is a huge step in the right direction. So, continue to live long and HODL and be happy and positive everyone!
Written by Dominic Zohreh
Twitter – domz_invests
Instagram – domz_invests
